The __________ tells us when the government raises taxes, the higher tax rate causes fewer units to be sold.
A. quantity effect
B. price effect
C. government spending effect
D. quality effect
A. quantity effect
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The present value of $200 to be paid to you at the end of two years, if the market interest rate is 5 percent, is
a. $181.41 b. $190.00 c. $210.00 d. $225.78 e. cannot be determined from the information given
Money allows dissimilar goods and services to be valued according to a single common denominator—a nation's basic monetary unit, such as the dollar. Which of the following represents this function?
A. Medium of exchange B. Store of value C. Standard of value D. Standard of deferred payment
If the United States consumption possibilities are greater than its production possibilities, then the United States must have
A. autarky. B. an open economy. C. a closed economy. D. protectionism.
The greater is the risk of non-repayment of a loan, the
A) higher is the expected rate of interest. B) longer is the expected time to repay the loan. C) lower is the handling charges for the loan. D) lower is the expected rate of interest.